RESTRICTED  
  
WT/BFA/W/622 /Rev.1  
10 May 2023  
(23-2317) Page: 1/43 
Committee on B udget, Finance  and Administration  Original:  French  
 
  
PERFORMANCE AUDIT REPORT OF THE INDEPENDENT EXTERNAL AUDITOR  
ON THE  GOVERNANCE AND MANAGEMENT OF  
EXTRA -BUDG ETARY TRUST FUNDS  
Revision  
The performance audit report of the independent External Auditor on the governance and management 
of extra -budgetary trust funds is attached . 
 
  WT/BFA/W/622 /Rev.1  
- 2 - 
    WT/BFA/W/622 /Rev.1  
- 3 - 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 EXTERN AL AUDIT OF   
THE WORLD TRADE 
ORGANI ZATION  
 
PERFORMANCE AUDIT REPORT  
 
 
GOVERNANCE AND  MANAGEMENT  OF 
EXTRA -BUDGETAR Y TRUST FUNDS  
(Novemb er 2022)  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RÉFÉRENCE COUR DES COMPTES: CoE 202 1-2 
 
WT/BFA/W/622 /Rev.1  
- 4 - 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BLANK PAGE  
  WT/BFA/W/622 /Rev.1  
- 5 - 
  CONTENTS  
 
I. AUDIT FRAMEWORK, OBJECTIVES AND METHODOLOGY  ................................ ..........  8 
1. Audit framework  ................................ ................................ ................................ ........  8 
2. Audit objectives  ................................ ................................ ................................ .........  8 
3. Conduct and methodology of the audit  ................................ ................................ ... 8 
II. BACKGROUND  ................................ ................................ ................................ ...............  120 
III. OBSERVATIONS AND RECOMMENDATIONS  ................................ .............................  131 
1. Overview of trust funds managed by the WTO  ................................ ...................  131 
1.1 Trust funds included in the scope of the audit  ................................ ...................  131 
(a) Follow -up to the previous audit of 2019  ................................ ..........................  153 
(b) Working Group  on Trust Funds  ................................ ................................ ....... 153 
2. Procedure for the creation and closure of rust funds  ................................ ........  164 
(a) Creation of funds  ................................ ................................ .............................  164 
(b) Closure  of funds  ................................ ................................ ..............................  175 
3. Strategy and overall objectives of the funds  ................................ ......................  197 
4. Financing and financial analysis of the funds' activity  ................................ ...... 220 
(a) Financing of the funds' activity  ................................ ................................ ........  220 
(b) Administrative and financial management of funds  ................................ ........  275 
(c) Monitoring of the management and approval of fund accounts  ......................  286 
5. Activity and monitoring of funds  ................................ ................................ .........  297 
6. Transparency of costs  ................................ ................................ ............................  29 
ANNEX 1 : Terms of reference  ................................ ................................ .......................  342 
ANNEX 2: List of persons met by the audit team  ................................ ........................  386 
ANNEX 3: Income, expenditure and balances of the Funds, 2013 -2021  ...................  397 
 WT/BFA/W/622 /Rev.1  
- 6 - 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BLANK PAGE  
 WT/BFA/W/622 /Rev.1  
- 7 - 
 
5 
 SUMMARY  
 
 
Our performance audit was carried out in accordance with the terms of reference notified to the 
World Trade Organization (WTO) on 22 June 2022 and with the International Standards of 
Supreme Audit Institutions (ISSAI). It led us to examine the management of trust funds on the basis 
of economy, efficiency and effectiveness. It allowed us, within the scope of our mandate, in the 
light of data and information dating back to 2013 where necessary, to make findings and draft 
recommendations aimed at strengthening the management of these funds.  
The economy of the administrative resources used  by the Secretariat to manage voluntary 
contributions is based on a centralized accounting and financial management system and on an 
operational management, information and reporting system spanning several services. The 
services themselves have heterogene ous resources in terms of quantity and technical 
competence.  
The financial resources put towards the trust funds' objectives (primarily voluntary contributions by 
Members) consistently exceed the needs of the funds' annual activity. As a result, the balanc e 
available at the end of the year, which represents a debt of some CHF  35 million owed by the WTO 
to the contributing  Members , tends to be stable.  
The balance available represents an overall cash surplus equivalent to two years of activity.1 This 
situati on is favourable in terms of trust fund liquidity, though subject to the negative interest 
payments it entails. However, the system could be rationalized and the cash flow reduced to an 
amount better suited to the funds' activity, which does not require a large precautionary reserve. 
The health crisis, moreover, resulted in an increase in this reserve, as technical assistance and 
related activities could be partially maintained using less expensive technical resources, such as 
videoconferencing.  
The contrib ution of the regular budget to the operation and activity of the funds, including through 
the provision of staff, is still not accurately monitored and valued. These inaccuracies should be 
corrected, as the WTO is required to provide true costs, due to its  adoption of public sector 
accounting standards and their principles.  
The inaccuracies regarding costs must be corrected so that the activity balance of each fund 
accurately reflects the contributions of the regular budget. If not, it will be impossible to  properly 
measure the operational efficiency of the extra -budgetary contributions that are channelled into the 
funds (see "efficiency" below).  
The effectiveness of the fund management is, in general, measured fairly well by the WTO using 
indicators whose n umber and quality have improved over the period under review. The Institute for 
Training and Technical Cooperation (ITTC) and the Standards and Trade Development Facility 
(STDF) measure the effectiveness of their technical assistance using indicators that are now more 
accurate and relevant.  
However, the effectiveness of certain funds can be further improved by making better use of the 
available data. Thus, the STDF managers have recently considered using existing trade data to 
 
1 CHF 39.7 million in cash as at 31 December 2022 and CHF 23 -24 million in pre -COVID annual 
expenditure (2018 -19 – Table 4), that is one year and eight months.  WT/BFA/W/622 /Rev.1  
- 8 - 
 
6 
 measure the effectiveness of t his fund not only in terms of assistance services (output), but also in 
terms of the integration of beneficiaries in world trade (outcome).  
Each trust fund is based on a specific commitment between one or more contributors and the WTO, 
or even a partnership agreement endorsed by the entire WTO (STDF), or a multilateral agreement 
(Trade Facilitation Agreement Facility (TFAF)). Regardless of their particular focus, all of these 
funds contribute to the WTO's overall technical assistance mandate, as s et out in the Ministerial 
Declaration of the Doha Conference in 2001. However, there is no overview of the outcomes of the 
activity financed by the trust funds that is readily available to the Members or the public. This sort 
of general overview, which is useful in itself, would be even more useful if accompanied by 
information on the aid for trade provided by other actors, such as the International Trade Centre 
(ITC) or the Enhanced Integrated Framework (EIF).  
Efficiency, the relationship between the outpu ts delivered and the resources employed, should be 
able to be accurately measured by the WTO for its own management needs. However, our audit 
revealed that the efficiency of trust funds could be measured in a much better way.  
The general system of internal  oversight in place at the WTO is not sufficiently developed or 
organized to provide the Secretariat with accurate and reliable cost data in real time.  
Based on our findings, we believe that the information systems used, the quality and value of which 
we a re not judging, are not used in a manner that produces enough cost data.  
In our view, it is up to the WTO to decide whether to publicly discuss the efficiency of the 
management of voluntary contributions; however, we consider that the WTO must have the 
necessary tools to measure this efficiency accurately itself.  
Conclusion  
The Secretariat must be able to effectively manage existing and future voluntary contributions, with 
stable administrative capacities.  
In the light of this requirement, we are of the vie w that there must be greater selectivity when 
accepting contributions, in accordance with predictable criteria defined in strategic documents.  
The ongoing discussion in 2022, initiated by the Working Group mandated for this purpose in 2021 
and aimed at rat ionalizing the management of trust funds, seems to be moving in the right direction. 
However, the guidelines proposed by this group have yet to be reflected in the Secretariat's actions.  
  WT/BFA/W/622 /Rev.1  
- 9 - 
 
7 
 LIST OF RECOMMENDATIONS  
 
The recommendations are given in order of priority:  
 
• Priority 1 , fundamental issue, requiring management's immediate attention  
• Priority 2 , less urgent issue to be handled by management  
• Priority 3 , issue for which oversight could be improved and to which management's 
attention is drawn.  
 
 
Priority  Recommendations  
3 1. Close the support fund of the Independent Entity – Pre-Shipment 
Inspection , inactive since 2006, and terminate the agreement that created 
it because it is no longer needed.  
1 2. Establish a suitable steering body with acces s to management, 
financial and operational information in order to ensure the overall 
coordination of and coherence in the trust funds' strategies and 
activities, as well as the information provided on this activity to Members, 
whether contributors or not.  
2 3. Include in the quarterly and annual trust fund activity monitoring 
reports submitted to the Committee on Budget, Finance and 
Administration (CBFA), a statement of the income collected and 
expenditure recorded shown against future budget estimates.  
1 4. Supplement biennial technical assistance plans so as to present all 
technical assistance activities of the World Trade Organization (WTO) in 
the broad sense, including capacity -building activities, thereby providing 
Members and stakeholder s with comprehensive information, beyond 
technical and legal specificities, that can be correlated with the activities 
of the various funds contributing to the technical assistance strategy.  
1 5. Accept the consequences of the particular relationship betw een the 
regular budget and the Trade Facilitation Agreement Facility (TFAF)  by 
reincorporating the Facility's assets and the financing for implementation 
of the Trade Agreement Facility (TFA) into the regular budget, with any 
subsequent financial needs cov ered by calls for contributions.  
1 6. Introduce cost accounting for trust funds so as to ensure a clear and 
comprehensive understanding of the full costs of each fund, identifying, 
among other things, the costs, in particular staff costs, borne by the 
regular budget.  
 
 WT/BFA/W/622 /Rev.1  
- 10 - 
 
8 
 I. AUDIT FRAMEWORK, OBJECTIVES AND METHODOLOGY  
1. Audit framework  
1. In accordance with the mandate given to us by the General Council of the World Trade 
Organization (WTO), the provisions of Chapter XI of the WTO's Financial Regulations and the 
notification to the Organization dated 22 June 2022, a team of three  auditors carried out a 
performance audit on the governance and management of extra -budgetary trust funds from 4 
to 8 July and from 29 August to 9 September. The audit focused on existing funds at the time 
of the assignment and used, where necessary, information dating back to 2013, particularly 
financial data.  
2. The audit was conducted in accordance with the International Standards of Supreme Audit 
Institutions (ISSAI), p articularly ISSAI 300  on performance auditing. In accordance with the 
definition of performance provided in this Standard, the audit focused on examining the 
economy, efficiency and effectiveness of the governance and management of the various trust 
funds managed by the WTO Secretariat.  
3. Our audit identified the immediate results of the trust funds' activity (outputs: delivery of 
services and, in particular, technical assistance) and their more sustainable results in relation 
to the WTO's general mandate (ou tcomes: sustainable effects of technical assistance). It paid 
special attention to efficiency and the possibility of measuring it.  
2. Audit objectives  
4. As stated in the specifications, shared with the Secretariat prior to the audit (see Annex  1), the 
object ive of the audit was to:  
- draw up a comprehensive and detailed picture of the active trust funds as at the date of the 
audit in order to assess the legal basis, operational aims and objectives, the resources and 
formal conditions for using them, and account ability of their operations;  
- evaluate, in particular, external governance (legal and strategic) and executive (operational) 
structures and processes, to identify their strengths and weaknesses, with regard to best 
governance practices observed or recommen ded;  
- verify whether the conditions were in place to measure the efficiency, effectiveness and 
economy of the governance and management systems, both of the entire system for the 
collection and use of extra -budgetary resources, and of each fund in particul ar, in terms of 
the WTO's mandates and the donors' stated intentions;  
- provide the WTO's governing bodies with specific and constructive recommendations "likely 
to contribute [...] to addressing the weaknesses or problems identified by the audit" (ISSAI 
300, para. 40).  
3. Conduct and methodology of the audit  
5. The audit was conducted on site in two phases: from 4 to 8 July and from 29 August to 
9 September 2 022. Work continued remotely between and after these dates.  WT/BFA/W/622 /Rev.1  
- 11 - 
 
9 
 6. The audit methodology combined:  
- analysis and follow -up of previous work on the trust funds: the Report of the External Auditor 
on the financial year 2019 (paragraphs 194 - 235), and the interim re ports and final report 
of the Working Group on Trust Funds, established by the Committee on Budget, Finance 
and Administration (CBFA) in 2021;  
- analysis of a series of internal documents requested from the Secretariat prior to the on -site 
visits, and raw, q uantitative or qualitative data obtained during the audit;  
- interviews with key Secretariat officials involved in the management of extra -budgetary 
funds (Deputy Directors -General (DDGs), directors, project managers, etc.), as well as with 
representatives o f five delegations (see Annex 2);  
- analysis of additional documents provided at our request by persons questioned during the 
audit.  
7. Economy, the relationship between the objectives and the resources used to achieve them, 
led us to examine the modalities for the establishment, operation and control of extra -
budgetary funds in order to verify whether sufficient and appropriate resources were made 
available in due time. Effectiveness, the relationship between the objectives and the results, 
led us to verify whether the income from the extra -budgetary funds' activity was properly 
measured and made known to the contributing Member s. Efficien cy, the relationship between 
resources and outputs, led us to verify whether and to what extent the outputs delivered could 
be compared with the real costs of the activities, which should be exhaustive and properly 
measured .  
8. We were not able to access all  the information necessary to carry out the audit, due to the 
limitations of the information system noted in this report. However, we would like to emphasize 
the spirit of cooperation shown by the Secretariat divisions, who helped us, as much as they 
could , to overcome these shortcomings and, in general, responded promptly to our requests, 
thus facilitating the organization of our audit work.  
9. Structurally, as the budget allocated by the General Council to the External Auditor to conduct 
an annual performanc e audit is limited, the analyses conducted in the framework of the 
above -mentioned specifications were naturally limited in scope, and the bulk of the 
investigations were guided by an evaluation of the critical issues of the subject matter.  
10. The observation s and recommendations contained in this report have been discussed with the 
relevant managers during a comprehensive formal clearance process: the Secretariat received 
the External Auditor's interim report on 24 November 2022: the factual and/or formal com ments 
and written contributions have been fully reflected in this report, as long as they were justified, 
documented and relevant.  WT/BFA/W/622 /Rev.1  
- 12 - 
 
10 
 II. BACKGROUND  
11. In many international organizations, albeit to varying degrees, voluntary contributions 
supplement the resourc es from the mandatory contributions of Member s. These contributions 
may be earmarked for a specific purpose. That purpose, like the volume of contributions, 
depends on the contributing Member ' wishes. In the case of the WTO, each Member, or group 
of Member s, wishing to fund an action in line with the Organization's mandates and strategy, 
whether a non -recurring initiative or a longer -term programme, may propose a project that it 
finances and whose implementation is entrusted to the WTO through an ad hoc  agreement.  
12. The share of voluntary contributions in the resources of international organizations varies 
greatly. At the WTO, voluntary contributions to extra -budgetary funds provide additional 
resources equivalent to roughly 10% of the regular budget, with a limited number of funds 
alone accounting for the bulk of those resources.  
13. The WTO streamlined its extra -budgetary resources mechanism in 2001, with the creation, 
following the consolidation or closure of several trust funds, of the Global Trust Fund aimed at 
financing the implementation of technical assistance plans. Over the past 10 years, and 
primarily since 2017, new funds have been created at the request of one or more Member s. In 
2022, 11 funds were active, in addition to a trust fund earmarked for log istical support for least 
developed countries (LDCs) to participate at Ministerial Conferences, as well as three 
administrative funds, including one that collects the fixed fees allocated to the WTO to finance 
its administrative management costs for trust funds.  
14. At least two directions emerged from the Doha Round that have influenced the management 
of extra -budgetary resources: the commitment to facilitate trade (the Trade Facilitation 
Agreement), and the objective of helping LDCs to develop policies and me ans to enable them 
to adopt the standards, principles and rules resulting from international trade agreements. The 
WTO Secretariat has thus been mandated to strengthen the support provided to Member s or 
candidate Members  to ensure that they benefit as much  as possible from their participation in 
trade negotiations and then in the trade covered by the trade agreements.  
15. The coherence of these trust funds' objectives with the WTO's stated policy and chosen 
strategy, as well as the effects of their disparity in  terms of size and type of management, must 
be examined.  WT/BFA/W/622 /Rev.1  
- 13 - 
11 III. OBSERVATIONS AND RECOMMENDATIONS  
1. Overview of trust funds managed by the WTO  
1.1 Trust funds included in the scope of the audit  
16. As at 31 December 2021, the total assets held by the 11 active trust funds and 3  active 
administrative funds was CHF 41 million.  
17. Trust funds can b e replenished each year through voluntary contributions from donors. They 
are divided into several categories:  
- Some were established through an agreement concluded by a number of WTO Members : 
this is the case of the Global Trust Fund, the trust fund for LD Cs Participation in WTO 
Ministerial Conferences and the French -Irish Mission Internship Programme.  
- Others were created by agreement between a Member and the WTO: this is the case of 
China's LDCs and Accessions Programmes, the EIF LDCs Graduation Fund, the WTO 
LDCs Fisheries Negotiations Trust Fund, the Fund for Transferring Technologies for the 
Development of Cotton By -products, and the China Development Cooperation Research 
Initiative (CDCRI), which, in terms of its management and its categorization, has b een 
identified by the Organization as comprising two projects , namely the  ASYCUDA TiVA 
Databases  Project  and the Investment Facilitation for Development  Project . 
- Others were established through a multilateral agreement  (or equivalent instrument)  
approved b y all WTO Members , including the Standards and Trade Development Facility 
and the Trade Facilitation Agreement Facility.  
18. The scope of the audit includes the active WTO trust funds per se  and, where required, their 
links to the three administrative funds, namely, the Programme Support Fund, the Independent 
Entity - Pre-Shipment Inspection - Deposits, and the Enhanced Integrated Framework 
Executive Secretariat.  
 
19. Out of these three administ rative funds, only the Programme Support Fund is related to trust 
funds. This is because the Independent Entity is not a trust fund but an entity. The Enhanced 
Integrated Framework Secretariat support fund is not linked to the trust funds managed by the 
WTO. The Enhanced Integrated Framework is actually a partnership of 51 countries, 24 donors 
and 8 international organizations, including United Nations agencies and programmes. For this 
reason, this fund was not examined as part of our audit.  
  WT/BFA/W/622 /Rev.1  
- 14 - 
12 Table 1: Overview of funds - financial year 2021  
* Including adjustments and reimbursements.  
** Amount of unused contributions owed to donors.  
*** The agreement entered into force "at the end of 2014", so it therefore only became effective in 2015.  
Source: WTO, reprocessed by the External Auditor.  
 
2 For the avoidance of doubt, the names of the funds have been left in the language of the agreements that 
created them.  Name of the fund2 Date 
created  Opening 
balance  Contributions 
received 
(thousands 
of CHF)  Expenditure 
in 2021 
(thousands of 
CHF)*  Closing 
balance 
(thousands 
of CHF)**  
Doha Development Agenda Global 
Trust Fund  2001  11 677  5 451  2 686  14 442  
French -Irish Mission Internship 
Programme  2001  1 254  1 206  1 151  1 309  
The Netherlands Trainee 
Programme  2005  994 875 909 960 
LDCs in the Ministerial Conferences  2009  455 126 75 506 
China LDCs and Accessions 
Programme (The China 
Programme)  2011  1 101  0 250 851 
Standards and Trade Development 
Facility (STDF) on SPS  2002  10 903  8 563  3 386  16 080  
Trade Facilitation Agreement 
Facility  2015*  4 976  23 348 4 651  
Transferring technologies and 
know -how for the development of 
cotton in eight pilot African LDCs  2019  61 0 61 0 
CDCRI  (China Development 
Cooperation Research Initiative ):  
1) Investment Facilitation for 
Development  Project  
2) ASYCUDA TiVA Databases  
Project /  2017  
 
2019  194 
 
591 0 
 
0 170 
 
21 24 
 
570 
WTO Fisheries for the participation 
of LDC Capital -Based Officials  2019  125 126 1 250 
EIF-LDC Graduation Fund  2019  176 0 128 48 
"TECHNICAL" FUNDS TOTAL:   32 507  16 370  9 186  39 691  
Independent Entity - Pre-Shipment 
Inspection - Deposits  1995  88 0 0 88 
Programme Support Fund  1999  804 0 96 708 
Enhanced Integrated Framework 
Executive Secretariat  2008  1 567  3 500  4 534  533 
"ADMINISTRATIVE" FUNDS 
TOTAL:   2 459  3 500  4 630  1 329  
GRAND TOTAL:   34 966  19 870  13 816  41 020  WT/BFA/W/622 /Rev.1  
- 15 - 
13 (a) Follow -up to the previous audit of 2019  
20. In its report on the accounts for financial year 2019, the previous external auditor3 had 
submitted observations on extra -budgetary trust funds and made the following 
recommendations:  
- To devel op a strategy to close inactive trust funds and merge them with trust funds with 
similar purposes. In this context, to harmonize main processes such as internal control, 
funding and procurement to improve transparency and compliance with WTO rules;  
- To ensu re multi -year monitoring of multi -year contributions for a better implementation of 
the provisions of IPSAS 23 from 2020;  
- With respect to procurement, to ensure that, for higher amounts, standardized procedures 
are used and properly documented;  
- To check th at the WTO trains staff responsible for procurement to ensure correct 
proceedings and optimization of procurement.  
21. We have followed up on these recommendations. We found that the recommendation on the 
rationalization of trust funds was partially implemente d, as the ad hoc  Working Group, whose 
work we have reviewed, has paved the way in its findings4 for a revamped approach to trust 
fund management by the Secretariat. However, implementation of these guidelines by the 
Secretariat has yet to be completed.  
22. The recommendation to adopt a standardized, harmonized and transparent procedure in 
respect of all  high-value purchases was dropped following a WTO analysis showing that only 
2% of trust fund expenditures relates to the procurement of goods and services that would 
likely be carried out by the WTO Procurement Section. Most trust fund expenditures pertai n to 
the implementation of projects and programmes by means of subsidies and other agreement 
modalities with implementing entities or parties.  
(b) Working Group on Trust Funds  
23. This Working Group, established by the Committee on Budget, Finance and Administ ration 
(CBFA) and open to all WTO Members, was mandated from April 2021 to analyse the trust 
fund management processes. Its objectives include examining the role played by the formal 
action plans such as the Biennial Technical Assistance Plan; assessing wh ether it would be 
useful to create an oversight committee; looking into the reasons for the increase in the number 
of funds; deciding on whether fund activities need to be further consolidated; and exploring 
opportunities for administrative harmonization o f management processes and for monitoring 
overheads and cost recovery.  
 
3 Supreme Federal Audit Authority of Germany ( Bundesrechnungshof ). 
4 Report from the Chair of the Working Group on Coherence in the Establishment and Management of 
WTO Trust Funds , 11 May 2021, WT/BFA/W/551.  WT/BFA/W/622 /Rev.1  
- 16 - 
14 24. The Working Group met nine times and shared its findings on two occasions with the CBFA 
(25 May 2021 and 12 August 2021). On completing its work, the Working Group did not make 
any dire ct recommendations, but suggested that the CBFA entrust the WTO  Secretariat with 
implementing its main findings without delay, in the form of draft guidelines, as follows:  
- To base the mobilization of voluntary contributions on the strategic objectives and priorities 
related to technical assistance, on the capacity of the Secretariat to implement the proposed 
activities and on the real value -added for the WTO of creating a new fund;  
- To prioritize voluntary contributions being directed to exist ing funds, preferably the Global 
Trust Fund, and require contributors to provide clear justifications for any stipulations for the 
use of their contribution;  
- To refer contributions not designated for an existing fund for review by WTO legal services;  
- To in clude expenditures from trust funds in programme plans developed by the relevant 
Secretariat divisions and combine them where appropriate;  
- To centralize contribution management functions, where possible, to ensure a good level of 
coherence and expertise;  
- To assess the direct and indirect costs of funds' activities to the regular budget prior to 
accepting new contributions; to clarify the costs of separate implementation associated with 
earmarked contributions; and to ensure that funds meet any significant s taffing or other 
resource needs by their own means;  
- To tailor the monitoring and evaluation of funds to their size, complexity and duration of the 
fund and activities, while at the same time setting sunset dates for funds or having regular 
review periods t o ensure they remain relevant to the needs of the Organization;  
- To provide the CBFA with regular information on the funds by notifying Members of any 
changes in the activities of a fund established for a specific purpose.  
25. These findings were approved by th e CBFA at its meeting held on 5 May 2022 (WT/BFA/203).  
26. The terms of reference for our audit were prepared without knowledge of the Working Group's 
findings. We have noted the findings with interest. The group's main guidelines appear to be 
consensual, give n the number of Members  involved in its work. If the CBFA endorsed the 
Working Group's recommendations, the Secretariat would still need to translate them into 
specific action.  
27. Our own audit work leads us to believe that these general guidelines are likely  to enhance the 
transparency and management of the funds, provided they are translated into coherent 
administrative instructions. In particular, we consider that the introduction of a variable intensity 
monitoring mechanism should be considered very carefu lly and that the measurement of costs 
must be based on rigorous data analysis.  
2. Procedure for the creation and closure of trust funds  
(a) Creation of funds  
28. Out of the 11 active trust funds at the end of 2021, four have been created in the last four  years. 
We ha ve examined the conditions under which they were created.  WT/BFA/W/622 /Rev.1  
- 17 - 
15 29. Pursuant to Regulation 19 of the WTO Financial Regulations, voluntary contributions, gifts or 
donations from WTO Members and Observers may be accepted by the Director -General 
provided that the purpo ses for which the contributions are made are consistent with the 
policies, aims and activities of the WTO. Should the acceptance of such contributions directly 
or indirectly involve additional financial liability for the WTO, the consent of the CBFA shall be 
required.  
30. With a view to strengthening donor confidence and improving transparency in the management 
of voluntary contributions, the Director -General adopted guidelines in 2019 for the receipt and 
notification of voluntary contributions, which provide a  framework for the exercise of his/her 
powers, including the application of the above -mentioned Regulation 19 of the Financial 
Regulations ( WT/INF/219 ).  
31. These new guidelines provide for more information to be made available to Members on the 
creation of trust funds. In particular, it is  now a requirement, for transparency purposes, to 
notify Member s not only of actual proposals for the creation of a fund but also of pledges for 
the future establishment of a fund. When considering a proffered voluntary contribution, the 
Director -General m ust seek the advice of the Administration and General Services Division 
(AGSD) as to whether the contribution would involve financial liability for the WTO. When the 
Director -General assesses the proffered contribution positively, he/she shall notify the C BFA, 
for its consideration, so any Member may express a view.  
32. Once the fund has been established, the Secretariat must provide Member s with detailed 
information, including the objectives of the trust fund, its beneficiaries, its implementation 
strategy, t he expected deliverables, the amount of funding, the expected duration, and the 
implementation partners identified. These rules have led to better information being provided 
to Member s. Nevertheless, they were not deemed to be entirely satisfactory by some  Member s 
who were seeking more in -depth information, particularly given the growing tendency to create 
funds for a specific purpose outside of the Global Trust Fund, which might have led to a climate 
of mistrust. This is why the CBFA proposed in April 2021  the establishment of the ad hoc  
Working Group in order to clarify more objectively the strengths and weaknesses of the extra -
budgetary trust fund mechanism, or even the risks of strategic drift, about which some people 
expressed concern.  
(b) Closure of fu nds 
33. The Working Group on Trust Funds has not outlined the conditions for closing funds that have 
become irrelevant. It would be useful if the WTO could clarify the process for closing funds in 
its financial regulations or in other documents to be adopted as a result of the Working Group's 
findings.  
34. However, we note that the number of active trust funds for each period remains relatively stable 
in view of the number of creations and closures of extra -budgetary funds over the period 2013 
to 2021. The  WTO therefore follows a well -reasoned practice of closing trust funds, which 
should be encouraged.  WT/BFA/W/622 /Rev.1  
- 18 - 
16 Figure 1. Creation and closure of funds  
 
[Number of funds created]  [Number of funds closed]  [Number of funds active as at 1 December]  
Source: WTO, reproce ssed by the External Auditor  
35. We note, however, that a "fund", the Independent Entity – Pre-Shipment Inspection  - Deposits 
(IE), has not been mobilized since its creation in 1995, and has not registered any financial 
movements since, at least, 2013 (see Ann ex 3). This "Independent Entity" is, moreover, not 
strictly speaking a trust fund. It is, in fact, the administrative repository of the mechanism for 
settling disputes between exporters and pre -shipment inspection agencies and companies 
established pursuan t to the Agreement on Preshipment Inspection.5 This mechanism is 
supposed to receive advance deposits with a view to carrying out independent reviews before 
export, as requested by Members, in order to cover costs. The money only transits through the 
mechanism until the independent review accounts are  closed, from which any advance deposit 
money that remains unused after incurred costs is returned to stakeholders. It was established 
pursuant to an agreement between the WTO, the International Chamber of Commerce and the 
International Federation of Inspe ction Agencies. The Agreement and its management 
mechanism have only been mobilized twice in the mid -2000s, and they have not been used 
since 2006.  
36. Paragraph 4 of Annex I to document WT/L/125/Rev.1, which details the implementation of 
Article 4 of the WTO Agreement on Preshipment Inspection, provides that "[t]his Agreement 
may be terminated by any party by written notice to the others. Unless otherwise agreed, this 
Agreement shall be terminated 6 months after receipt of such notice by the other parties." Th e 
WTO is therefore free to terminate this Agreement at any time, given that its ineffectiveness 
has been demonstrated over the last 12 years.  
37. Insofar as the IE mechanism is de jure  overseen by the Council for Trade in Goods, and 
therefore by the WTO, and t he mechanism does not receive advance deposits to cover the 
costs of inspections, there was undoubtedly no need to establish specific accounting and 
management measures within the Organization; operations can be monitored in a non -
accounting manner. The la ck of activity of what is more an ancillary account than a fund stricto 
sensu , shows definitively that it is not needed now.  
 
5 Approved by the General Council in February 1996, WT/L/125/Rev.1.  
WT/BFA/W/622 /Rev.1  
- 19 - 
17 RECOMMENDATION No. 1. Close the support fund of the Independent Entity - Pre-Shipment 
Inspection, inactive since 2006, and terminat e the agreement that created it because it is no 
longer needed.  
3. Strategy and overall objectives of the funds  
38. As recalled above, under Regulation 19 of the WTO Financial Regulations, voluntary 
contributions may only be accepted by the Director -General when the purposes for which the 
contributions are made are consistent with the policies, aims and activities of the WTO . This 
principle is fundamental and applies to all international organizations receiving this kind of 
voluntary financing: the very spirit of trust fund management by an international organization 
would not be compatible with a practice that resulted in the organization becoming merely the 
receptacle for, and passive administrator of, the strategy and projects specific to a single 
Member  or a li mited group of Members . 
39. Clearly, compatibility with the Organization's objectives is a matter that may involve a certain 
amount of subjectivity and differences in interpretation, but this is minimized when the 
Organization has clear and publicly -stated str ategies and lines of work, which is the case for 
the WTO. Beyond the general principle laid down in the Financial Regulations, we note that 
the rules governing the use of these funds have not been sufficiently defined in an official 
reference document.  
40. The majority of funds in operation or that operated over the 2013 -2022 period have been used 
to finance technical assistance, the enhancement of which was described as a need by 
Member s in the Ministerial Declaration of the Doha Conference.6 In this declaration, Ministers 
of the Member s called for the creation of " well targeted, sustainably  financed " technical 
assistance and capacity -building programmes with " secure and predictable " funding. They 
instructed the Secretariat, " in coordination w ith other relevant agencies, to support domestic 
efforts for mainstreaming trade into national plans for economic development and strategies 
for poverty reduction ". 
41. In response to this request, in 2001, the General Council increased regular budget financin g 
for technical assistance by 80% and established the Doha Development Agenda Global Trust 
Fund. In practice, the trust funds supplement these regular budget resources.  
42. The trust funds thus contribute to the overall objective of technical assistance, which , as 
summarized by the WTO, is sustainable trade capacity -building in beneficiary  Members . 
However, this contribution takes various forms that meet, to differing degrees, the goal of 
having a sustainable impact. Such assistance takes a wide variety of form s: long -term 
internships in Geneva with missions  of the Member  or the WTO Secretariat; seminars and 
workshops; subsidies for different trade -related intellectual projects; and ad hoc  material 
support to allow certain  Members  to participate in multilateral meetings (see Table 3). Against 
this backdrop, we share the view of the ad hoc Working Group that the WTO would benefit 
from refocusing the funds' activity on its strategic objectives and avoiding a fragmented 
approach to assistance activities. Moreover, f ollowing the recommendation made by the 
External Auditor in 2019 to harmonize the management of trust funds and, based on our own 
work, we support the proposals of the Working Group for more integrated programming and a 
more centralized management of funds . 
 
6 WTO Ministerial Conference, Fourth Session, Do ha, 9 -14 November 2001, Ministerial Declaration 
adopted on 14 November 2001, paras. 39 -41 and reference to specific commitments listed in paras.  16, 21, 
24, 26, 27, 33, 38 -40, 42 and 43.  WT/BFA/W/622 /Rev.1  
- 20 - 
18 43. We consider that there is a need to begin discussions aimed at rationalizing the division of 
management responsibilities for these funds without disregarding the specificity of their 
purpose or legal status. Such a reorganization would likely limit the p roliferation of ad hoc 
actions.  
Table 2: Current allocation of operational management responsibilities  
Division responsible  Funds managed  
Institute for Training and Technical Cooperation 
(ITTC)  
Knowledge Management Division (for WCP)  Global Trust Fund (GTF) (including WTO Chairs Programme 
(WCP))  
French -Irish Internship Programme  
The Netherlands Trainee Programme  
ITTC  
Accessions Division  
Development Division  
Trade Policies Review Division  China's LDCs and Accessions Programme  
Agriculture and Commodities Division  Standards and Trade Development Facility  
Transferring technologies for the development of cotton 
(closed)  
Market Access Division  Trade Facilitation Agreement Facility  
Administration and General Services Division  LDCs Participation in the 12th Ministerial Conference  
Development Division  EIF-LDC Graduation Fund  
Rules Division  WTO Fisheries negotiations for the participation of LDC 
Capital -Based Officials  
Economic Research and Statistics Division  CDCRI:  1) Invest ment Facilitation for Development Project  
 2) ASYCUDA T iVA Databases  Project  
      
Source : WTO Secretariat, Working Group on Trust Funds.WT/BFA/W/622 /Rev.1  
- 21 - 
19 Table 3: Activities financed by the funds  
 
Fund  Overall objective  Earmarked  Services provided  
modus operandi  Strategy  
GTF To build the human and 
institutional capacities of 
beneficiaries  No* Various activities  
In-person and remotely  
Chairs Programme   
 
 
 
Biennial Technical 
Assistance and 
Training Plan  French -Irish 
Mission 
Internship 
Programme  To build permanent missions' 
capacities with a view to their 
active participation in the daily 
activities at the WTO.  Yes Long -term internships in 
Geneva with missions to 
the WTO  
The 
Netherlands 
Trainee 
Programme  To build the capacities - of 
beneficiary Members  and 
contribute to the development 
of LDCs, low -income Members  
and small, vulnerable 
economies in areas related to 
trade policy.  Yes Long -term internships in 
Geneva with the WTO 
Secretariat  
China's LDCs 
& Accessions 
Programme  To provide assistance and 
support to LDCs regarding 
accessions  Yes Long -term internships  
Seminars and workshops  
Defrayal of travel 
expenses  Biennial Technical 
Assistance and 
Training Plan  
Standards and 
Trade 
Development 
Facility - STDF  To build SPS capacities in 
developing Members  to 
facilitate safe trade  
 Global 
partnership 
with a 
specific 
purpose  Subsidies for projects, 
publications, studies, 
information media 
(including 
cinematographic),  events 
and webinars  Partnership 
strategy 
2020 -2024  
Trade 
Facilitation 
Agreement 
Facility  To complement existing support 
efforts to enhance their 
effectiveness, and to assist 
Members  that have not 
received support from other 
actors  WTO 
Agreement 
with a 
specific 
purpose  Needs assessments, 
national and regional 
workshops; project and 
donor suppor t; single 
window for TFA financing  
Provision of information 
and responses on an 
individual basis  2017 Trade 
Facilitation 
Agreement  
LDC 
participation in 
the 12th WTO 
Ministerial 
Conf, Geneva  To facilitate the participation of 
LDCs in Ministerial 
Conference s  Yes 
 Defrayal of 
conference -related travel, 
accommodation and per 
diem  costs for one 
minister and two 
high-level officials.   
LDC graduation 
fund To build the trade capacities of 
LDCs, with a view to their 
graduation from the LDC 
category  Yes 
 Research and analysis on 
LDC graduation, 
capacity -building 
workshops and events  
Dissemination of research 
findings   
WTO Fisheries 
Negotiations 
LDCs 
Participation  Established in response to a 
request by a group of LDC 
Members and WTO observers 
with an int erest in the fisheries 
subsidies' negotiations  
 Yes 
 Support to allow experts  
of Members  to participate 
in negotiations in Geneva  
  
CDCRI: 
Investment 
Facilitation for 
Development 
Project  
 "To advance developing and 
least -developed countries' 
understanding of multilateral 
approaches to facilitating 
investment for development"  
 Yes 
 
 
 
 
 Forums on trade and 
investment facilitation for 
development  
Database on investment 
facilitation   
 
 
 
 
 WT/BFA/W/622 /Rev.1  
- 22 - 
20 Fund  Overall objective  Earmarked  Services provided  
modus operandi  Strategy  
CDCRI: 
Automated 
System for 
Customs Data  
(ASYCUDA) 
TiVA 
Databases  
Project   
 
To facilitate automatic data 
notification to the WTO through 
ASYCUDA; to incorporate 
African eco nomies in trade in 
value added (TiVA) databases 
to improve their capacity to 
analyse global value chains   
 
Yes 
 Establishment of a 
research network  
 
 
Development of a module 
to be integrated in the 
customs software ; 
Capacity -building for five 
African economies on 
statistics for TiVA 
databases   
 
 
 
* Some Members wished however to make an earmarked contribution to the WCP.  
 
Source: WTO Secretariat, Working Group on Trust Funds.  
 
44. By establishing a procedure for notifying Members, for information or consultation purposes, 
as well as the technical opinion of the AGSD, the above -mentioned guidelines of 
18 March  2019, addressed to the CBFA, r epresented a step forward.  
45. However, this vital step forward is far from sufficient: more precise administrative guidelines 
should be adopted in each of the areas of progress identified by the Working Group/CBFA, in 
order to ensure the coherent organization  and management of the actions financed by the 
various funds. These guidelines should clearly specify the criteria for accepting a new fund and 
the arrangements for the joint programming of existing funds.  
46. We consider that, above all, it is necessary to im plement the Working Group's proposal to 
create a steering body that, having access to all the necessary information, would be 
responsible for the real -time internal control of the funds, and would provide a response in 
terms of governance to the difficulti es linked to the ambiguities of the funds' approval and 
contract procedures and the fragmentation of the funds' management.  
47. The Secretariat posed the question of whether such a mechanism would be consistent with 
the governance structures specific to certai n funds, such as the STDF. The answer to this is 
probably that even if several organizations or donors were concerned about the strategy and 
management of the funds in question, WTO Members, as a collective party to the agreements 
establishing the funds, h ave rights under those same agreements: in particular, and materially, 
that of ensuring that the strategies adopted and the projects undertaken, both in terms of 
courses of action and impact, remain closely in line with the general strategy and collective 
interests of the WTO.  
RECOMMENDATION  No. 2. Establish a suitable steering body with access to management, 
financial and operational information in order to ensure the overall coordination of and 
coherence in the trust funds' strategies and activities, as w ell as the information provided 
on this activity to Members, whether contributors or not.  
4.  Financing and financial analysis of the funds' activity  
(a) Financing of the funds' activity  
Programme Support Fund  
48. As extra -budgetary financial resources, the trust funds collect voluntary contributions from 
WTO Members. These resources are, in principle, intended to finance specific programmes of WT/BFA/W/622 /Rev.1  
- 23 - 
21 action that donor Members ask the WTO to develop. They cannot, in line with their  founding 
spirit, be used to finance the Organization's expenditure that falls under the regular budget.  
49. When the extra -budgetary resources paid into trust funds are not used in full, the balances 
available constitute WTO debts to donors. Except where duly  provided for by contract, the 
unused funds must be repaid to donors upon conclusion or termination of the funds' activities.  
50. To offset the costs incurred by the WTO for the management of trust funds, the Financial 
Regulations provide that an overhead fee may be charged on these funds' resources, in the 
form of a fixed percentage of up to 13% applied on recorded expenditure. This fixed fee is 
transferred to the Programme Support Fund (PSF), which pays expenditure incurred under the 
WTO regular budget to sup port the funds' activities. We note that the rules for the management 
of these funds are outdated (from between 1998 and 2004) and have not been updated or 
clarified since then.  
51. Through this fixed fee, the WTO has financial resources that, although they ar e not directly 
incorporated into its regular budget, are added to it and are used to finance the direct costs  
incurred by the Organization for the administrative management of trust funds. These costs 
correspond to the expenditure of the Secretariat's services responsible for the accounting and 
financial monitoring of the funds, and to the payment of fund -managin g staff who hold an " L" 
contract that is not subject to the regular budget's employment cap.7 The indirect costs  incurred 
by the funds, such as costs related to telecommunications, utilities and use of the premises, 
are covered by a lump sum payment from the PSF, corresponding to 10%8 of the Fund's 
expenditure, which is paid into the Organization's regular budget.  
52. The financial resources paid into the PSF, unlike those paid into operational trust funds, belong 
definitively to the WTO. At the closing of ac counts, the 13% fixed fee charged on a fund, 
whether or not used by the WTO, is not returned to that fund as it is not classed as a debt. The 
Organization may, in principle, freely use the amount to finance the costs generated by another 
fund because the v arious fees are fungible. In reality, the WTO does not keep records that 
compare, for each fund, the fee and the expenditure that this fee is supposed to cover. As a 
result, it is impossible to verify whether the total of the fixed fees covers the expendit ure 
actually incurred by the WTO for the management of trust funds.  
53. The Secretariat estimates that the costs generated by the funds are low and that, if the sum of 
the fixed fees failed to cover these costs, the Organization's budget would only be margina lly 
affected. It also emphasizes that, although these fees do not cover the cost of managing the 
trust funds, this remains a secondary issue since these fees are not intended to cover the 
funds' management expenses, but to provide additional funding to tec hnical assistance 
programmes. However, these assertions are not documented anywhere or by any methodical 
analysis, demonstrating the need for fund management cost accounting to be implemented 
(see below) and, if necessary, for the PSF's terms of reference to be clarified.  
Trust funds' surpluses  
54. The examination of the trust funds' financial statements shows that they all have a positive 
financial reserve.9 
 
7 The "L" contracts of other staff are financed directly by the funds . 
8 Or 1.3% of total expenditure of each fund.  
9 This liquidity is subject to the regulations of the WTO's bank concerning return on cash, which themselves 
depend on the rules set by the Swiss National Bank. Until 2015, interest rates for demand deposits w ere 
 WT/BFA/W/622 /Rev.1  
- 24 - 
22 55. The evolution of voluntary contributions over the period 2013 -2021 shows a certain degree of 
stability  that can also be seen in the expenditure of the trust funds.  
Table 4: Income and expenditure of the trust funds  
 
Thousands of CHF  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Voluntary 
contributions 
received from 
Members  24,197  21,13
0 22,10
8 19,14
6 19,38
5 21,29
3 20,95
6 19,95
6 19,87
0 
Expenditure for the 
year 23,278  23,23
5 18,00
7 21,35
7 23,01
6 23,01
0 24,21
1 17,27
8 14,89
3 
Balance as at 
31 December (debt 
due to donors)  32,687  32,60
0 34,28
1 33,60
9 31,69
8 31,91
5 30,84
7 34,96
6 41,02
0 
Source: WTO, reprocessed by the External Auditor.  
 
Figure 2: Income, expenditure and balance of the trust funds  
[thousands of CHF]  
 
[Voluntary contributions received from Members]   [Expenditure for the year]  
[Balance as at 31 December (debt due to donors)]  
Source: WTO, reprocessing by the External Auditor.  
56. Details for each fund are set out in Annex 3.  
57. Over the period 2013 -2019, the pace of voluntary contributions remained correlated with the 
expenditure of the funds, the activity of which remained c onsistent with the resources collected.  
 
very slightly positive. They were negative from 2015 (between -0.1% and -0.4%) and increased to zero in 
mid-2022.  
WT/BFA/W/622 /Rev.1  
- 25 - 
23 58. The funds' resources are generally calculated on the basis of Member ' short -term 
commitments, even though the operations to which they are contributing, including technical 
assistance, are implemented over the medium  or long term. This situation is likely to undermine 
the operations concerned. While no critical instances of Member s' retracting their commitments 
have been brought to our knowledge, it appears that the general principle (with the exception 
of the WCP) of  unearmarked funds, which are channelled into the GTF or the STDF, remains 
a guarantee of stability in the event of a donor's withdrawal or of a significant reduction in the 
donor's contribution.10 The risk of disparities between donors' commitments and th e operations 
of the trust funds that they finance has, as it happens, been raised in other organizations.11 
59. The increase seen in 2020 and 2021 in the balances available at the end of the accounting 
year is circumstantial and a result of the effects of the pandemic crisis on WTO activity. This 
crisis led to a decline in the number of people trained by technical assistance programmes, in 
addition to increased use of cheaper means of communication and distance training, with a 
corresponding decrease in tra vel costs. Yet donors did not reduce their voluntary contributions 
accordingly, so the funds' financial capacity, as well as WTO liabilities, increased overall by 
CHF 6 million between 2019 and 2021, rising from CHF  35 million at the end of 2019 to 
CHF 41 million by the end of 2021.  
Trust funds' liquidity and expenditure  
Figure 3. Trust funds' liquidity  
[thousands of CHF]  
 
Source: WTO, reprocessed by the External Auditor.  
 
10 As long as a contributor's commitment remains assured in principle, delays in confirming (particularly 
when it comes to renewing an expi red MoU), or even in paying, the contribution are not critical when the 
cash position is clearly positive.  
11 For example, World Food Programme, Internal Audit of WFP Corporate Trust Funds  (Internal Audit 
Report AR/15/05), 2015, p. 13 " Medium and long term  needs of the activities were not aligned with the 
funding from [trust funds] which was frequently short term. " 
WT/BFA/W/622 /Rev.1  
- 26 - 
24 Figure 4. Trust funds' expenditure  
[thousands of CHF]  
 
Source: WTO, reprocessed by the External Auditor.  
60. The WTO's liabilities to donors under all the funds have generally been stable over a long 
period of time, with the exception of 2021 and 2022. This overall stability encompasses 
contrasting trends: the liquidity of the  TFAF, created in 2015, contributes to these liabilities, 
while the liquidity of the GTF has declined sharply. This outstanding amount at the end of the 
financial year is effectively a reserve of available cash funds that are equivalent to two years' 
expen diture.  
61. Pointing to the costs incurred by the resumption of face -to-face activities and inflationary 
pressures linked to the war in Ukraine, the Secretariat considers that cash position to be 
misleading, although it fails to provide any documented and spec ific forward -looking analysis 
of future costs of the programmes operated by the funds to support its position. Such analysis 
is particularly necessary to explain the Secretariat's pessimism, given that the rate of "inflation 
linked to the war in Ukraine" i s an average and relative figure that does not apply to all the 
categories of expenditure incurred by the projects financed by the funds.12 
62. This outstanding amount can mainly be attributed to the underuse of donors' voluntary 
contributions in 3 of the 11 a ctive trust funds, namely the TFAF, the STDF and the GTF. At the 
end of 2021, 86% of the WTO's debt to donors came from these funds, yet they accounted for 
just 46% of expenditure for the financial year. The Secretariat puts forward two supporting 
argument s. 
63. With regard to the TFAF, the Secretariat explains that this fund was created to enable ready 
access to the resources needed to implement the Trade Facilitation Agreement (TFA), which 
would justify being able to send the donations to the fund in advance,  even several years in 
advance, of the implementation phase. Moreover, it argues that the payment of new 
contributions by donors is a political act, demonstrating their active support for the TFA. It is 
 
12 In any case, even though all costs would incur an average inflation rate of 15% (the highest estimate, for 
the sake of argument), the accumula ted cash position would still be sufficient to cover more than18 months' 
expenditure.  
WT/BFA/W/622 /Rev.1  
- 27 - 
25 clear that the bulk of the accumulated cash reserves is the result of substantial payments 
received in 2015, 2016 and 2017. The fact remains that the fund's financial capacity is 
equivalent to more than 10 years' expenditure, and that either the initial payments were larger 
than expected for the aforemention ed political reasons, or it is proving harder than expected to 
maintain the momentum of the implementation of the TFA that its advocates and signatories 
originally envisioned.  
64. With respect to the STDF, the Secretariat suggests that the "real -time" financia l capacity of the 
fund is, on the contrary, more often unfavourable because the end -of-year cash position is a 
snapshot and does not take into account outstanding commitments, contractual and 
non-contractual. On outstanding contractual commitments, the Sec retariat's observation is 
technically sound, because in accrual accounting (as adopted by the WTO) the cash available 
is only an imperfect indicator of the ongoing management; however, if, over the long term, there 
is little variation, on average, in the p roportion of outstanding contractual commitments, 
correlated to the fund's ability to deliver operationally, then the cash available at the end of the 
accounting year is used to pay old outstanding commitments and new commitments to be 
settled over the cou rse of the year. As for "non -contractual commitments", besides posing a 
significant risk to the management of the STDF, if they can be considered potential liabilities of 
the Organization, they can in no way be taken into account when establishing the true  financial 
situation and cash position.  
65. This is why the WTO should pay particular attention to managing the liquidity of these three 
funds so that the flow of donors' voluntary contributions is as closely aligned as possible with 
the pace of the action pl anned. Undoubtedly, the operations whereby donors deposit money 
follow Members' internal  procedures that are beyond the control of the WTO. The argument 
put forward by the Secretariat, that it cannot in any way control the flow of payments by donors 
–the o nly decision makers on this matter –, overestimates the difficulty. The Organization is 
mandated by its Members to ensure efficient public financial management in line with good 
practices. Not only should the Organization not tolerate practices whereby cert ain donors place 
money with the funds and by doing so avoid Members' internal  controls, in particular budgetary 
requirements, to which they are subject, it is incumbent upon Organization to set up a 
mechanism to regulate payments that may exceed the funds'  reasonable needs, if necessary 
by asking the governing bodies to adopt the regulations for such a mechanism. The matter 
becomes all the more pressing when plentiful liquidity leads to negative bank interest rates 
being recorded in the accounts. Although m arginal, the negative interest rates applied between 
2015 and 2022, which could have been avoided, have reduced trust funds' capacity to provide 
technical assistance.  
66. Moreover, we consider that, in order for the trust funds to be able to operate, the prin ciples 
and conditions for managing their liquidity must be outlined in clearly -written texts. Decisions 
regarding unused funds are made by the donors, who may or may not ask for such funds to 
be repaid to them, which is a weakness. It could be useful for t he WTO to include rules on the 
management of trust funds' liquidity (call for funding, return of funds, etc.) in its financial 
regulations or in a specific guideline.  
(b) Administrative and financial management of funds  
67. The AGSD is responsible for the administ rative and financial monitoring of trust funds. The 
Division most notably provides accounting and financial services and manages procurement 
for programmes and projects financed by the funds. Within the Division, Financial Management 
Services prepare budge ts, establish payroll, pay suppliers, prepare financial reports, manage 
the cash flow and process applications for the payment of mission expenses. The Division also 
has a financial control and performance management service that seeks to ensure financial WT/BFA/W/622 /Rev.1  
- 28 - 
26 security and the clarity of reports and improve internal cooperation. The Director of AGSD is 
also responsible for assessing and signing financing and partnership agreements concerning 
trust funds, and is empowered to do so.  
68. These two services analyse, rev iew and approve all financial transactions pertaining to trust 
fund management and ensure that financial reports are accurate and prepared in accordance 
with WTO management rules (Financial Regulations, Financial Rules, International Public 
Sector Accounti ng Standards). They are responsible for the annual publication of financial 
reports.  
69. In terms of internal control, we note that the Secretariat's risk register refers to the trust fund 
sector only very briefly. While trust funds account for around 10% of all WTO financial 
operations, only one risk, addressed in 2015, was identified in the 2018 register, which listed 
65 risks in total. It would be unacceptable to consider the management of risks (financial, 
operational and reputational) associated with extra -budgetary trust fund operations to be of no 
concern to the Organization because the funds belong to donors. The Organization's approach 
to the risks posed by these funds is therefore even more unsatisfactory given the inadequate 
size of the Office of Internal Oversight (OIO) in terms of both staffing and skills, which prevents 
this Office  from conducting any targeted audit activity regarding the management of these 
funds.  
70. Furthermore, while we note that the administrative and financial support services have 
sufficiently competent human resources, the limitations of the management informat ion system 
prevent them from having the information required to efficiently and effectively guide fund 
management. This is the case, for example, for retrospective analysis of developments by 
category of expenditure and revenue for each fund, or the analyt ical identification, by contract 
type, of staff involved in trust fund activities, and details of the amount of their work time spent 
on such duties.  
71. In these circumstances, the WTO should use its information system and its accounting and 
financial databas es to gain a clear understanding of the full costs of each trust fund, including, 
in particular, all the costs borne by the WTO regular budget. Indeed, the efficiency of the funds 
can only be measured if their activity can be linked to reliable and accurat e operating costs.  
(c)  Monitoring of the management and approval of fund accounts  
72. Every three months, the Secretariat reports to the CBFA on the financial position of the funds 
through a quarterly trust fund report. We examined a sample of these reports f or the period 
2013 -2022 and noted that they had evolved positively. The format of the reports was 
standardized five years ago and the data for each fund are now presented in a homogeneous 
manner, in a document some 15 pages long, which facilitates their us e by CBFA members.  
73. The quarterly reports provide different information depending on the financial volume of the 
funds, and include 10 pages on the Global Trust Fund, two pages on STDF and TFAF funds, 
and three pages on other funds, a proportion we consider  appropriate. The reports contain an 
introduction presenting the financial position of the funds and activity indicators for the Global 
Trust Fund. The information provided to the CBFA therefore appears to be such as to enable 
it to conduct its supervisory  mandate in a satisfactory manner.  
74. However, the quarterly reports do not provide information on the management of administrative 
funds. It would be appropriate and useful for them to include, as a minimum, information on 
the Programme Support Fund. In addi tion, the methodology for establishing the green, yellow WT/BFA/W/622 /Rev.1  
- 29 - 
27 or red status indicators accompanying the tables should be set out at the beginning of the 
document.  
75. While the information provided in these documents is of good quality, we note, from the records 
we have seen, that plenary discussions on trust fund remain limited. This situation can 
reasonably be attributed simply to the fact that particular financial issues are addressed in 
preparatory bilateral technical discussions between those raising the issues  and the 
Secretariat divisions concerned. This practice, common in many international organizations 
and justified by the technical nature of certain topics, should not, however, be used as 
justification for circumventing the role of the Committee or for al lowing discussions within the 
Committee on the topics referred to it to cease.  
76. In these circumstances, we believe that the information to be provided to the CBFA should be 
further developed so as to provide all Member s with a substantial basis for discuss ion that will 
enable them to fully exercise their governance authority and build consensus.  
77. According to Regulation 19 of the WTO Financial Regulations, voluntary contributions, gifts or 
donations "s hall be administered in accordance with the present Finan cial Regulations. " 
Regulation 6 in Chapter II on Preparation of the budget provides as follows: " For each financial 
period, the Director -General shall prepare a budget proposal containing estimates of the 
income and expenditure of the WTO, together with th e comparable figures for the previous 
period.  This budget proposal, as well as any revisions for the second year of the biennium as 
may be necessary, will be presented to the Committee [CBFA] at least eight weeks prior to the 
last scheduled meeting of the year of the General Council. " 
78. Despite having reviewed the minutes of CBFA meetings between 2016 and 2021, we cannot 
be sure that these budgetary provisions have been properly observed for all trust funds, 
particularly those that are not covered by the tech nical assistance plan.  
79. The quarterly reports on trust fund activity submitted to the CBFA only show budget estimates 
grouped according to expected results in different areas of technical assistance, mainly in 
relation to the implementation of WTO agreement s and the participation of Members  in 
negotiations. This technical assistance expenditure, which aggregates the expenditure of all 
the trust funds concerned, accounts for 96% of the budget, as recorded in the quarterly report 
of March 2022 (WT/BFA/W/592).  
80. The Secretariat does not provide the CBFA with annual budget estimates for all trust funds, 
calculated by the funds, which would make it possible to ensure that actual expenditure is 
consistent with the estimated expenditure, defined in relation to the fin ancial reserves of the 
funds. Budget estimates and estimate monitoring are not used only to make fund usage more 
transparent and to provide Members with a better overview throughout the year; they are also 
proven methods used in treasury management and ope rations planning.  
RECOMMENDATION No. 3. Include in the quarterly and annual trust fund activity monitoring 
reports submitted to the Committee on Budget, Finance and Administration (CBFA), a 
statement of the income collected and expenditure recorded shown against future budget 
estimates.  
5. Activit y and monitoring of funds  
81. The ITTC was established to coordinate WTO technical assistance and training activities. It 
operates as a division of the WTO Secretariat and manages the Global Trust Fund (GTF), 
which  was originally created to finance technical assistance through voluntary contributions. It WT/BFA/W/622 /Rev.1  
- 30 - 
28 is responsible for carrying out the WTO's mandate to help beneficiary Members  build 
institutional and human capacities in the field of trade, address trade policy i ssues, integrate 
more fully into the multilateral trading system, exercise their rights as WTO Members, and 
participate fully in multilateral trade negotiations.  
82. The biennial technical assistance plan drawn up by the ITTC, which was approved at the 
financi al level by the CBFA and at the technical level by the Committee on Trade and 
Development (CTD), covers activities financed by three sources of funding: the regular budget, 
the Global Trust Fund (GTF) and a limited list of funds. While technical assistance  and 
capacity -building activities have developed significantly and play a major role in the 
Organization's strategy and missions, the limit on the ITTC's mandate is no longer coherent: 
this plan should form the basis for the Secretariat's delivery of all a ssistance activities in order 
to provide Members with a comprehensive overview.  
83. However, the ITTC is currently not the only entity in the Secretariat to manage voluntary 
contributions earmarked for technical assistance. Resources not managed in the framewo rk 
of the technical assistance plan and not included in the CTD's overall review of technical 
assistance account, on average, for more than 20% of the total volume of technical assistance 
trust funds.  
84. The Secretariat is of the view that this dispersion is justified by the specific aspects of the 
objectives defined for each of the funds outside the ITTC. In particular, it highlights the 
partnership -oriented nature of the STDF and its specialization in sanitary and phytosanitary 
issues concerning agricultural  products.  
85. In our opinion, the Secretariat's argument, that dispersion would be of interest in terms of 
management flexibility, does not appear to have been proven true. In our view, the argument 
that this dispersion exists because the ITTC lacks the staff  and technical skills required to 
manage all the funds does not seem sufficient when internal organizational measures would 
allow for the reassignment of the staff needed.  
86. A consequence of the dispersion of the management of technical assistance -related trust 
funds among various Secretariat divisions is that there is no programmatic and strategic 
document covering technical assistance as a whole. Furthermore, reports on technical 
assistance activities are not compiled into a single coherent docume nt to inform the decisions 
of governing bodies. As a result, Member s, and the public, are deprived of comprehensive and 
coherent information on the conduct of the strategic mandate entrusted to the WTO in 2001.  
RECOMMENDATION No. 4. Supplement biennial tec hnical assistance plans so as to 
present all technical assistance activities of the World Trade Organization (WTO) in the 
broad sense, including capacity -building activities, thereby providing Member s and 
stakeholders with comprehensive information, beyond  technical and legal specificities, 
that can be correlated with the activities of the various funds contributing to the technical 
assistance strategy.  
87. In addition to information on WTO activities, our audit shows that steps could be taken to 
provide Member s with more comprehensive information on technical assistance provided by 
other parties. This would put the WTO's actions into perspective and help identify coordination 
needs and the risk of overlap. The WTO contributes CHF 18 million a year to the budget  of the 
ITC, the technical cooperation agency established jointly by the United Nations Conference on 
Trade and Development (UNCTAD) and the WTO to address business aspects of trade 
development. Through this contribution, the WTO indirectly provides techni cal assistance to 
the private sector. Similarly, the WTO hosts the EIF, a cooperation structure set up at the WT/BFA/W/622 /Rev.1  
- 31 - 
29 Organization's initiative to provide assistance to LDCs, in partnership with the International 
Monetary Fund (IMF), the ITC, UNCTAD, the United Na tions Development Programme 
(UNDP) and the World Bank.  
88. In our opinion, information on WTO technical assistance needs to be put into perspective by 
providing Members with consolidated information that allows the Secretariat's technical 
assistance activities  to be presented as part of a comprehensive overview of trade -related 
technical assistance, including, in particular, that provided by the ITC or the EIF. We note that, 
according to the WTO, the annual technical assistance report, prepared in conjunction w ith the 
Organisation for Economic Co -operation and Development (OECD), meets this need fully and 
Members are satisfied.  
6. Transparenc y of costs  
89. In the expenditure recorded in trust fund financial statements, staff costs are not attributed 
according to a standardized procedure for the calculation of costs and their allocation.  
90. The staff costs recognized as direct trust fund expenditure should correspond to the costs of 
the specialist personnel assigned to implement fund projects. Such individuals are recru ited 
under L contracts: in principle, they are not included as permanent staff funded by the WTO 
regular budget.  
91. The administrative and financial staff who provide support services for trust fund activities and 
who are also recruited under L contracts, are  funded by the resources of the Programme 
Support Fund financed by the 13% fixed fee.  
92. At our request, and in order to verify that staff costs had been correctly attributed to the various 
budgets concerned, the Secretariat prepared (on 1 September 2022) a l ist of all staff, on both 
L contracts and regular contracts, who were involved in trust fund management, indicating for 
each staff member the share of their work time given over to this task.  
93. A review of this list shows that 42 out of a total of 87 individ uals involved in trust fund 
management on a full - or part -time basis hold an L contract financed by one of the funds or by 
the Programme Support Fund, while 45 other individuals hold a regular contract financed by 
the WTO regular budget. This finding revea ls that staff costs are not fully recorded in trust fund 
financial statements.  
94. We have conducted a detailed analysis using the TFAF as an example. It appears that four 
individuals with regular contracts and one individual with an L contract are involved in  
managing this fund.  
Table 5: Staff assigned to Trade Facilitation Agreement Facility management  
Service  Name  Contract type  Amount of time spent on trust funds  
Market Access Division  Mr A L contra ct 100%  
Market Access Division  Ms B Permanent  Variable  
Market Access Division  Ms C Permanent  100%  
Market Access Division  Ms D  Permanent  Variable  
Market Access Division  Ms E  Permanent  0 but < 25 %  
       Source: WTO  
 WT/BFA/W/622 /Rev.1  
- 32 - 
30 95. However, the TFAF financial statement at 31 December 2021 records the expenditure for an 
L contract, but not the expenditure for staff on a regular contract, even though one  individual 
devotes 100% of their work time to the fund and three others a variable  but not negligible 
amount. The staff costs recorded in the TFAF fund financial statement at 31  December 2021, 
which are incomplete, are therefore undervalued, while the balance of available resources is 
overvalued. The WTO's liabilities to donors are ther efore also overvalued.  
96. This means that the WTO regular budget has been used to finance some of the staff needed 
to manage the TFAF fund, without any recompense: in other words, the WTO, that is the 
Member s, subsidizes the TFAF by supplementing the voluntary resources collected by this 
fund. The Secretariat is of the view that this situation is justified on the grounds that technical 
assistance is part of its core activities. It emphasizes that the Members fully agree on this point 
and, it considers that, without the contribution of the TFAF, the Organization would not be able 
to deliver technical assistance and capacity -building support to LDCs. Since this programme 
is now one of the Organization's core missions, and because the TFA  is a multilateral 
agreement endorsed by all Members, mainly between 2015 and 2017, it would be more 
transparent and more consistent with the decisions taken at the Doha Conference to 
reincorporate this "fund" into the Organization's regular budget, even i f it means ringfencing 
the resources during the annual budget discussions.  
RECOMMENDATION No. 5  : Accept the consequences of the particular relationship between 
the regular budget and the Trade Facilitation Agreement Facility (TFAF)  by reincorporating 
the Facility's assets and the financing for implementation of the Trade Agreement Facility 
(TFA) into the regular budget, with any subsequent financial needs covered by calls for 
contributions.  
97. We conducted a similar analysis of the STDF, which leads us to the  same conclusion: the 
STDF financial statement does not record the costs associated with employing the Facility's 
secretary financed by the regular budget, who devotes 100% of their time to fund management. 
However, the WTO emphasizes that this situation i s a result of the STDF's internal rules and 
considers that it is fully accepted by the Members.  
98. Conversely, a review of the list of eight individuals with L contracts who are assigned to provide 
fund support and therefore financed by the Programme Support Fund, shows that in practice 
they only work on fund management for a variable amount of their work time; the rest of their 
output directly benefits the Organization. The wage bill covered by the Organization's regular 
budget is subject to an employment cap , which, in principle, does not allow for the inclusion of 
L contracts. There is therefore, we believe, an apparent anomaly in the allocation of wage 
costs with regard to staff recruited under L contracts who work partly on trust funds and partly 
on other tasks for the Organization. The Secretariat considers these tasks to be closely linked 
to the functions of the trust funds and that the situation described is consistent with Regulation 
19 of the WTO Financial Regulations.  
99. If the operational separation between the WTO itself and the trust funds may be relatively 
vague because of the understandably complementary nature of their mandates and projects, 
the fact remains that, since the funds report on their financial performance s and financial 
positions at year -end, the interplay between these entities must be clearly reported in their 
accounts. We therefore maintain that a more accurate record needs to be kept of regular 
budget contributions to the funds, and vice versa .  
100. The re muneration of administrative staff on L contracts is funded entirely by the  13% fee 
imposed by the WTO on trust fund expenditure. However, subject to an in -depth review of the 
other duties performed by these staff members, only part of their remuneration s hould be WT/BFA/W/622 /Rev.1  
- 33 - 
31 funded by the 13% fee. The balance of their remuneration should be charged to the WTO 
regular budget, in which case these L contracts should be included under the WTO 
employment cap because of the amount of time their holders devote to WTO duties.  
101. In conclusion, a review of the time spent on trust funds by staff members with specialist or 
administrative and financial support duties shows that:  
- The WTO information system, as it currently stands, does not provide any details of the 
actual costs of st aff expenditure attributable to trust fund duties.  
- In view of the balances available at the end of the accounting year, the WTO's statement of 
liabilities is incomplete, particularly insofar as expenditure for certain staff members with 
trust fund duties a nd on regular contracts continues to be financed by the WTO regular 
budget.  
- Costs for staff on L contracts carrying out support functions, which are currently funded 
entirely by the 13% fee on trust fund expenditure, are overvalued, since some of these sta ff 
members work partly on tasks unrelated to trust funds.  
- The work time of staff members assigned to trust funds must be recorded accurately, so as 
to ensure the reliability of the staff expenditure amounts recorded in the financial statements 
of these fun ds. 
  
RECOMMENDATION No. 6. Introduce cost accounting for trust funds so as to ensure a 
clear and comprehensive understanding of the full costs of each fund, identifying, among 
other things, the costs, in particular staff costs, borne by the regular budget . 
 
 
[End of audit observations]  
 WT/BFA/W/622 /Rev.1  
- 34 - 
32 ANNEX 1 : Terms of reference  
 
"PERFORMANCE AUDIT " TERMS OF REFERENCE 2022  
 
Governance and management of extra -budgetary trust funds  
 
 
 
1. Background  
In most international organizations, extra -budgetary trust funds supplement resources from 
the mandatory contributions made by Member s to fund the operations of the organization's 
regular programme. These funds depend on the will and initiatives of Members , in terms of 
both purpose and volume. Each Member  wishing to fund a programme or an action, a priori  
within the framework of the orga nization's mandates and strategy, whether a non -recurring 
initiative or a longer -term programme, puts forward a proposal for a project and funding to 
be implemented under an agreement between the Member  and the organization.  
 
In many international organizations the extra -budgetary resources thus collected may be 
significantly higher than the resources of the "regular programme", which is funded by 
mandatory contributions.  
 
The WTO streamlined its extra -budgetary resources mechanism, to  a certain extent, in 
2001, with the creation, following the removal or consolidation of several dispersed funds, 
of a central fund, the Global Trust Fund, which seeks to support the activities of the 
Technical Assistance Plan. Over the past 10 years, and more significantly the past three to 
four years, other funds have been created at the request of one or more Member s. Today, 
in addition to a fund earmarked for logistical support for LDC participation in Ministerial 
Conferences and three "administrative" funds (including one fund collecting the 
management fees charged by the WTO for trust fund operations), 11 funds with various 
objectives are in operation.  
 
2. General challenges for the WTO  
As noted in many international organizations, the first questions tha t arise in this area are, 
on the one hand, related to the coherence (in terms of its mandate as well as its operations) 
of goals and projects financed by extra -budgetary funds with the overall strategy of the 
organization, and, on the other hand — indirect ly related to this problem —, how to control 
the proliferation of funds, reflecting the proliferation of specific objectives possibly pursued 
by donor Members . 
 
At least two directions emerged from the Doha Round, which have undoubtedly weighed 
on the mana gement of the extra -budgetary system: the commitment, translated into a 2014 
agreement to "facilitate trade" (the Trade Facilitation Agreement), and the objective of 
helping LDCs to develop policies and means to enable them to adopt the standards, 
principl es and rules resulting from international trade agreements. It also led to the creation 
of two other funds for major activities: the Trade Facilitation Agreement Facility (TFAF) and 
the Standards and Trade Development Facility (STDF).  
 WT/BFA/W/622 /Rev.1  
- 35 - 
33 A conclusion of the preliminary review, conducted between November 2021 and March 
2022, for which the Chair of the CBFA, the Chair of the Working Group on WTO Trust 
Funds, a number of delegations and senior management officials (DDGs and directors 
responsible for managing cer tain funds) were consulted, was that there is a serious crisis 
of confidence in the system of governance and management of extra -budgetary resources. 
At the same time, the audit of the WTO's financial statements for 2021 also identified some 
minor but sign ificant weaknesses in the accountability and auditing of the funds.  
 
This crisis of confidence seems to affect, albeit with more or less intensity, the relationships 
among all stakeholders: among the Member s; between the Member s and the Secretariat, 
and vice versa; and between certain divisions within the Organization.  
 
It appears to be based on the concern that the intentions of some donors fit only imperfectly 
into the WTO collective strategy and that, in the absence of good go vernance to ensure 
consistency, rigour and transparency, the operations of the funds do not follow the logic that 
prevailed when they were included in the WTO Programme of Action.  
 
However, it was not possible during this preliminary review to determine wh ether this 
situation could be assessed and characterized objectively.  
 
In any event, the doubts, or even distrust, that affect the relationships of certain parties in 
the trust fund system, seem likely to also affect efficiency, effectiveness and overall 
performance.  
 
3. Purpose, challenges, methods  
 
3.1. Purpose of the audit  
The purpose of the audit of the governance and management of extra -budgetary trust funds 
is to:  
- Draw up a comprehensive and detailed picture of the active trust funds as of 
the date of the audit in order to assess the legal basis, operational aims and 
objectives, the resources and formal conditions for using them, and 
accountability of their operations;  
- Evaluate, in particular, external governance (legal and strategic) and 
executive (ope rational) structures and processes, to identify their strengths 
and weaknesses, and to compare them with the practices of other international 
organizations as well as best governance practices observed or 
recommended, if/when standards exist;  
- Measure the e fficiency, effectiveness and economy of the governance and 
management systems, of both the entire system for the collection and use of 
extra -budgetary resources, and of each fund in particular, in terms of the 
Organization's mandates and the donors' stated  intentions;  
- Propose (possibly in the form of options) to the governing bodies of the WTO 
the ways and means to improve the "system" and, to the extent possible, to 
restore collective confidence in it.  
3.2. Key audit questions  
The key questions that will g uide this audit are:  
 WT/BFA/W/622 /Rev.1  
- 36 - 
34 • How are trust funds hosted by the WTO instituted, created, structured, financed and 
executed? Does the Organization have a clear and explicit policy and strategy for 
the collection and use of extra -budgetary resources?  
• How, why and wh at role do the governing bodies or the Secretariat play in setting 
the strategic direction of the extra -budgetary system and in creating a trust fund? 
How is the consistency of extra -budgetary activities with the WTO's mandates 
assessed and monitored?  
• What  are Member s' expectations and how satisfied (differentiated according to 
whether they are donors of extra -budgetary resources or not, or beneficiaries) are 
they with the current operation of the trust fund management system and 
procedures, their output an d impact (either operational or financial)?  
• What are the key factors of the current fund management modalities that allow the 
expectations of donor, non -donor or beneficiary Member s to be met?  
3.3. Methods, stakeholders  
The audit work will be carried out t hrough a combination of:  
 
• The use of questionnaires to collect raw quantitative or qualitative data  
 
• Work on documents (analysis of documents that can provide clarification on the 
subject matter, requested by the auditors)  
 
• Interviews with various specific officials from both the governing bodies and the 
Secretariat, and, for the latter, from the administrative and financial sectors as 
well as the operational sectors  
 
• The use of external or internal audit and advisory work undertaken on the same 
or related topics  
 
• The use of comparison data provided by the external or internal auditors of a 
selection of international organizations of activities that, if not identical, are at 
least comparable in terms of their operationa l management.  
In accordance with the methodological principles laid down by INTOSAI, there will be two 
opportunities to comment on all the findings: during the audit, based on tentative findings, 
and then before the final report is drawn up, based on an in terim report.  
 
The External Auditor will request that feedback on the tentative findings, usually intended 
simply to confirm the facts and figures or interview records, be submitted within a maximum 
of two working days. In order to maintain the efficiency of this arrangement, these findings 
will be sent directly to the managers concerned, with a copy also sent systematically to the 
external auditors' contact point (AGSD).  
 
Unless there are special circumstances that call for an extension, the Organization s hall 
have three calendar weeks to comment on the interim report. The absence of any comments 
or observations by the deadline shall constitute acceptance of the relevant elements of the 
interim report by the Organization.  
 WT/BFA/W/622 /Rev.1  
- 37 - 
35 4. Time frame, audit team  
 
To allo w the gradual collection of information and confirmation of most findings, and due to 
the limited availability of the audit teams over the summer, the audit will be conducted in 
two phases (a few weeks apart):  
 
- Phase 1  (8 auditors x days): 4 - 8 July  
 
Mr Jean -Michel CHAMPOMIER , Head of Mission  
Mr Gaël CHICHEREAU  
 
- Phase 2  (30 auditors x days): 29 August - 9 September  2022  
 
Mr Jean -Michel CHAMPOMIER , 
Mr Romuald du BRIEL de PONTBRIAND , 
Mr Gaël CHICHEREAU  
 
The Director of the External Audit (Mr Hervé -Adrien METZGER) will accompany the team 
from 6  to 8 July and may also, at his discretion, intervene at the end of the audit, during the 
week of 19 -23 September, in order to finalize the provisional report of the aud it. 
 
 
* 
*    * WT/BFA/W/622 /Rev.1  
- 38 - 
36  
ANNEX 2: List of persons met by the audit team  
 
Delegations  
 
Permanent Mission of China  
Mr Yu Yongbing - Adviser  
 
Permanent Mission of Germany  
Ms Bettina Waldmann - Ambassador  
 
Permanent Mission of the European Union  
Mr Hiddo Houben - Head of Mission  
 
Permanent Mission of France  
Mr Etienne Oudot de Dainville - Perma nent Delegate  
 
Permanent Mission of the United States of America  
Mr David Bisbee - Permanent Delegate  
 
WTO  
 
Mr Jean Marie Paugam - Deputy Director -General  
Mr Xiangchen Zhang - Deputy Director -General  
Mr Francesco Perlini - Head of Service  
Mr John Breckenridge - Financial Controller  
Ms Tapiwa Latifa Mwenifumbo - Finance Specialist  
Mr Claude Trolliet - Chief of Section  
Ms Marlynne Hopper - Deputy Chief of Section  
Mr Melvin Spreij - Counsellor and Director of the STDF  
Mr Juan Manuel Fernández  Azpiroz  - Chief of Section  
Mr Taufiqur Rahman - Head of Unit  
Ms Daria Shatskova - Legal Affairs Officer  
   
37 WT/BFA/W/622 /Rev.1  
- 39 - 
 
ANNEX 3: Income, expenditure and balances of the Funds, 2013 -2021 (thousands of  CHF; source: WTO ) 
GLOBAL TRUST FUND (TDA)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  12,417  18,058  16,522  16,934  16,026  13,600  12,609  9,644  11,677  
Voluntary Contributions Received  13,619  7,793  9,105  6,880  6,169  7,375  6,242  5,586  5,451  
Expenditures  -7,989  -9,347  -8,693  -7,773  -8,380  -8,345  -9,187  -3,532  -2,578  
Adjustments (Reimbursement)  12 18 0 -14 -216 -21 -20 -21 -108 
Balance Due to Donors as at 31 December  18,059  16,522  16,934  16,027  13,599  12,609  9,644  11,677  14,442  
          
FRENCH -IRISH MISSION INTERNSHIP PROGRAMME (TIMM1)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  1,909  1,405  1,254  1,129  950 1,013  1,262  1,228  1,254  
Voluntary Contributions Received  802 789 808 814 847 1,151  1,090  1,074  1,206  
Expenditures  -1,307  -942 -934 -992 -783 -901 -1,122  -1,046  -1,143  
Adjustments (Reimbursement)  -1 2 0 -1 -1 -1 -2 -2 -8 
Balance Due to Donors as at 31 December  1,403  1,254  1,128  950 1,013  1,262  1,228  1,254  1,309  
          
NETHERLANDS TRAINEE PROGRAMME (TNL05)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  1,054  143 1,102  1,137  184 107 981 1,182  994 
Voluntary Contributions Received  0 1,750  875 0 875 875 875 875 875 
Expenditures  -911 -792 -840 -953 -951 0 -672 -1,061  -905 
Adjustments (Reimbursement)  0 1 0 0 -1 -1 -2 -2 -4 
Balance Due to Donors as at 31 December  143 1,102  1,137  184 107 981 1,182  994 960 
          
CHINA LDC'S & ACCESSIONS PROGRAMME (TCLAP)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  401 477 383 385 560 399 570 749 1,101  
Voluntary Contributions Received  363 0 485 485 473 494 500 453 0 
Expenditures  -287 -94 -483 -310 -633 -321 -320 -99 -242 
Adjustments (Reimbursement)  0 0 0 0 -1 -1 -1 -2 -8 
Balance Due to Donors as at 31 December  477 383 385 560 399 571 749 1,101  851   
38 WT/BFA/W/622 /Rev.1  
- 40 - 
 
STANDARDS & TRADE DEVELOPMENT FACILITY (TWB01)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  9,800  9,325  8,607  8,632  7,534  7,669  8,219  9,392  10,903  
Voluntary Contributions Received  3,606  4,344  4,558  4,045  4,679  6,602  5,921  5,771  8,563  
Expenditures  -4,085  -5,072  -4,534  -5,134  -4,528  -6,040  -4,728  -4,233  -3,294  
Adjustments (Reimbursement)  5 10 0 -9 -16 -12 -20 -27 -92 
Balance Due to Donors as at 31 December  9,326  8,607  8,631  7,534  7,669  8,219  9,392  10,903  16,080  
          
TRADE FACILITATION AGREEMENT FACILITY (TTFAF)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  0 0 1,304  4,121  5,962  6,582  6,228  5,113  4,976  
Voluntary Contributions Received  0 0 3,098  2,303  1,217  347 108 173 23 
Expenditures  0 0 -281 -5 -586 -690 -1,211  -295 -308 
Adjustments (Reimbursement)  0 0 0 -457 -11 -11 -13 -15 -40 
Balance Due to Donors as at 31 December  0 0 4,121  5,962  6,582  6,228  5,112  4,976  4,651  
          
TRADE FACILITATION -PARTICIPATION OF CAPITAL BASED OFFICIALS IN 
THE NEGOTIATING GROUP MEETINGS (TTFNG)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  335 355 0 0 0 0 0 0 0 
Voluntary Contributions Received  399 68 0 0 0 0 0 0 0 
Expenditures  -379 -206 0 0 0 0 0 0 0 
Adjustments (Reimbursement)  0 -24 0 0 0 0 0 0 0 
Balance Due to Donors as at 31 December  355 193 0 0 0 0 0 0 0 
          
TRADE FACILITATION NATIONAL NEEDS ASSESSMENTS TRUST FUND 
(TTFNA)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  507 655 1,270  0 0 0 0 0 0 
Voluntary Contributions Received  1,280  1,427  0 0 0 0 0 0 0 
Expenditures  -1,132  -814 0 0 0 0 0 0 0 
Adjustments (Reimbursement)  1 2 -1,236  0 0 0 0 0 0 
Balance Due to Donors as at 31 December  656 1,270  34 0 0 0 0 0 0   
39 WT/BFA/W/622 /Rev.1  
- 41 - 
 
LDC's Participation in WTO Ministerial Conferences (TMI)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  391 0 0 0 90 357 338 405 455 
Voluntary Contributions Received  197 0 454 0 780 0 125 144 126 
Expenditures  -588 0 -454 0 -561 0 0 -93 -81 
Adjustments (Reimbursement)  0 0 0 90 48 -19 -58 -1 6 
Balance Due to Donors as at 31 December  0 0 0 90 357 338 405 455 506 
          
EIF - LDCs GRADUATION FUND (TLDCG)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  0 0 0 0 0 0 0 119 176 
Voluntary Contributions Received  0 0 0 0 0 0 200 136 0 
Expenditures  0 0 0 0 0 0 -80 -79 -127 
Adjustments (Reimbursement)  0 0 0 0 0 0 0 0 -1 
Balance Due to Donors as at 31 December  0 0 0 0 0 0 120 176 48 
          
WTO LDCs FISHERIES PARTICIPATION (TFSNG)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  0 0 0 0 0 0 0 34 125 
Voluntary Contributions Received  0 0 0 0 0 0 169 152 126 
Expenditures  0 0 0 0 0 0 -135 -61 0 
Adjustments (Reimbursement)  0 0 0 0 0 0 0 0 -1 
Balance Due to Donors as at 31 December  0 0 0 0 0 0 34 125 250 
          
TRANSFERRING TECHNOLOGIES FOR THE DEVELOPMENT OF COTTON 
(TEF02)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  0 0 0 0 0 0 0 78 61 
Voluntary Contributions Received  0 0 0 0 0 0 147 52 0 
Expenditures  0 0 0 0 0 0 -69 -69 -6 
Adjustments (Reimbursement)  0 0 0 0 0 0 0 0 -55 
Balance Due to Donors as at 31 December  0 0 0 0 0 0 78 61 0   
40 WT/BFA/W/622 /Rev.1  
- 42 - 
 
CDCRI: ASYCUDA TVA DATABASES PROJECT (TCR02)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  0 0 0 0 0 0 0 1,089  591 
Voluntary Contributions Received  0 0 0 0 0 0 1,091  0 0 
Expenditures  0 0 0 0 0 0 -1 -496 -16 
Adjustments (Reimbursement)  0 0 0 0 0 0 -1 -2 -5 
Balance Due to Donors as at 31 December  0 0 0 0 0 0 1,089  591 570 
          
CDCRI: INVESTMENT FACILITATION FOR DEVELOPMENT PROJECT (TCR01)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  0 0 0 0 0 285 196 196 194 
Voluntary Contributions Received  0 0 0 0 520 0 0 0 0 
Expenditures  0 0 0 0 -235 -89 0 -1 -169 
Adjustments (Reimbursement)  0 0 0 0 0 0 0 -1 -1 
Balance Due to Donors as at 31 December  0 0 0 0 285 196 196 194 24 
          
EVALUATION TRUST FUND (TEVAL)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  0 0 96 311 259 0 0 0 0 
Voluntary Contributions Received  0 96 0 242 0 0 0 0 0 
Expenditures  0 0 0 -294 0 0 0 0 0 
Adjustments (Reimbursement)  0 0 215 0 -259 0 0 0 0 
Balance Due to Donors as at 31 December  0 96 311 259 0 0 0 0 0 
          
DATA SET ON TRADE IN SERVICES (TDSTS)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  0 0 0 0 108 97 18 0 0 
Voluntary Contributions Received  0 0 0 108 94 0 5 0 0 
Expenditures  0 0 0 0 -104 -79 -23 0 0 
Adjustments (Reimbursement)  0 0 0 0 0 0 0 0 0 
Balance Due to Donors as at 31 December  0 0 0 108 98 18 0 0 0   
41 WT/BFA/W/622 /Rev.1  
- 43 - 
 
NATURAL DISASTER AND TRADE (TNDAT)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  0 0 0 0 0 0 52 0 0 
Voluntary Contributions Received  0 0 0 0 0 110 0 0 0 
Expenditures  0 0 0 0 0 -58 -44 0 0 
Adjustments (Reimbursement)  0 0 0 0 0 0 0 0 0 
Balance Due to Donors as at 31 December  0 0 0 0 0 52 8 0 0 
          
ENHANCED INTEGRATED FRAMEWORK EXECUTIVE SECRETARIAT (TIFES)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  1,709  1,182  2,108  599 851 477 414 483 1,567  
Voluntary Contributions Received  3,931  4,863  2,725  4,269  3,731  4,339  4,483  5,540  3,500  
Expenditures  -4,460  -3,941  -4,235  -3,900  -4,100  -4,397  -4,408  -4,447  -4,519  
Adjustments (Reimbursement)  2 4 0 -117 -5 -5 -6 -9 -15 
Balance Due to Donors as at 31 December  1,182  2,108  598 851 477 414 483 1,567  533 
          
INDEPENDENT ENTITY - PRE-SHIPMENT INSPECTION DEPOSITS (T0013)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  88 88 88 88 88 88 88 88 88 
Voluntary Contributions Received  0 0 0 0 0 0 0 0 0 
Expenditures  0 0 0 0 0 0 0 0 0 
Adjustments (Reimbursement)  0 0 0 0 0 0 0 0 0 
Balance Due to Donors as at 31 December  88 88 88 88 88 88 88 88 88 
          
PROGRAMME SUPPORT FUND (EPSF1)  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Balance Due to Donors as at 1 January  872 998 978 914 996 1,024  939 1,039  804 
Voluntary Contributions Received  0 0 0 0 0 0 0 0 0 
Expenditures  -2,140  -2,027  -2,087  -1,996  -2,155  -2,090  -2,211  -1,766  -1,505  
Adjustments (Reimbursement)  2,266  2,006  2,023  2,078  2,183  2,005  2,311  1,531  1,409  
Balance Due to Donors as at 31 December  998 977 914 996 1,024  939 1,039  804 708 
__________